Suppose Amy earns $575 per week working as an interior designer for Ourhouse. She uses $10 to take a yoga class at Big Bend. Big Bend pays Van $400 per week to instruct yoga. Van uses $150 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market Event Van earns $400 per week working for Big Bend. Amy earns $575 per week working for Ourhouse. Amy spends $10 to take a yoga class. O O Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. ✔The $400 per week Van earns working for Big Bend The $150 Van spends to purchase furniture from Ourhouse Amy's labor

Suppose Amy earns $575 per week working as an interior designer for Ourhouse. She uses $10 to take a yoga class at Big Bend. Big Bend pays Van $400 per week to instruct yoga. Van uses $150 to purchase furniture from Ourhouse. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Factor Market Product Market Event Van earns $400 per week working for Big Bend. Amy earns $575 per week working for Ourhouse. Amy spends $10 to take a yoga class. O O Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. ✔The $400 per week Van earns working for Big Bend The $150 Van spends to purchase furniture from Ourhouse Amy's labor

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Roger's World of Pets is considering adding cat grooming to the array of goods and services he currently provides. He estimates that consumers would be willing to pay $25 per cat for a 1 hr. cat grooming appointment. He also estimates that he would need 2 workers per cat (1 to hold the cat down and the other to groom the cat). Wages in this labor market are $15/hr. Using marginal analysis, Roger should: introduce cat grooming. do not offer cat grooming be on the fence ("indifferent") about introducing cat grooming. be unable to tell whether cat grooming is a good idea because we don't know how much he pays in rent for his shop.
For each of the following cases, determine whether the firm should (A) Use more labor and less capital, or (B) Use more capital and less labor. 1. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 3 (i.e., a unit of labor costs three times as much as a unit of capital) 2. The marginal rate of technical substitution is 2 (i.e., the marginal product of labor is twice the marginal product of capital) and the input price ratio is 1 (i.e., a unit of labor costs the same as a unit of capital) 3. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm's machines depreciate, so that the marginal product of capital decreases. 4. The marginal rate of technical substitution is initially equal to the input price ratio, but the firm successfully negotiates a lower rate of rent for their machines, so that the price of capital decreases. 5. The…
For a subsistence agricultural household, which of the following happen when the price of the staple they are producing increases? [SelectMultiple] Group of answer choices Due to profit effect, their utility as producers increases. The impact on overall welfare of the household is ambiguous since it depends on the relative forces of profit effect and price effect. Their is no effect since subsistence households never sell or buy their staple production. Due to price effect, their utility as consumers decreases.
Discuss general framework of Marshall's analysis by taking the concept of "substitution" into attention.
The marginal rate of technical substitution is The rate at which a producer is able to exchange, without affecting the quantity of output produced, a little bit of one input for a little bit of another input. b. The rate at which a producer is able to exchange, without affecting the total cost of inputs, a little bit of one input for a little bit of another input. The rate at which a producer is able to exchange, without affecting the total inputs used, a little bit of one output for a little bit of another output. d. A measure of the ease or difficulty with which a producer can substitute one technique of production for another
2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services Firms Households Markets for Factors of Production Based on this model, households earn income when firms v purchase factors v in factor markets. Suppose Teresa earns $875 per week working as a corporate attorney for Rowan and Martin Associates. She uses $9 to order a mojito cocktail at Little Havana. Little Havana pays Sam $350 per week to wait tables. Sam uses $200 to purchase legal service from Rowan and Martin Associates.
the run up in grain prices of the past 6 months has now caused an increase in the price of farmland. Since farmland is one of the major inputs in production of corn, the higher price for land will increase every farmer’s cost. Even if the farmer already owns land they previously purchased at lower prices, they have to recognize that the new higher price of land is their opportunity cost: they could just sell the land and receive the new higher price of land. show shifts in any of the cost curves, reflecting the higher cost of land (keeping in mind that this higher cost is independent of how much or how little corn is actually produced) and labeling the changed cost curves with a subscript 1. On the graph with $ on the vertical axis and individual firm output q on the horizontal axis, draw the P1 . What is the new profit maximizing output q1 for this typical firm? Graphically depict the size of profits or losses (negative profits) at the new price P1. Is the firm making positive or…
Choices for the three parts are: not change, increase, or decrease. Will the supply/demand curve shift left or right?, show on graph.
Based on this model, firms earn revenue when Suppose Teresa earns $750 per week working as a pilot for Wingies. She uses $10 to take a yoga class at Big Bend. Big Bend pays Sam $475 per week to instruct yoga. Sam uses $350 to purchase international flights from Wingles. Event purchase Identify whether each of the following events in this scenario occurs in the factor market or the product market. Sam earns $475 per week working for Big Bend. Teresa spends $10 to take a yoga class. Teresa earns $750 per week working for Wingies. Factor Market Product Market in product markets. The $475 per week Sam earns working for Big Bend O Teresa's labor Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply. The yoga class Teresa receives The $350 Sam spends to purchase international flights from Wingies
Distinguish between the Marginal Rate of Technical Substitution and Elasticity of Substitution in production
An economy can produce leather using labor and capital and wheat using labor and land. The total supply of labor is 50 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: Labor Input to Leatheroutput of LeatherLabor Input of WheatOutput of Wheat 27 5 19.8 10 38.5 10 31.2 15 47.3 15 42.3 20 56 20 52.1 25 65.7 25 60.6 30 74.5 30 69 35 82.4 35 77.4 40 88.2 40 85.4 45 94.1 45 93.9 50 100 50 100 a. Graph the production functions for leather and wheat. b. Graph the production possibility frontier. What will happen if more labor is employed?
Solve it correctly and explanations